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53 Volume and Issues Obtainable at Center for Sustainability Research and Consultancy

Journal of Business and Social Review in Emerging Economies ISSN: 2519-089X (E): 2519-0326

Volume 4: Issue 1June 2018

Journal homepage: www.publishing.globalcsrc.org/jbsee

Identification of Organizational Change Factors in Higher Education Institution

(Cases at New Public Universities in Indonesia)

1

Gusti Tia Ardiani, 2Adhitya Rahmat Taufiq, 3Andina Eka Mandasari

1

Lecturer, Department of Management, Siliwangi University,Indonesia. ardiani_tia@yahoo.com 2

Lecturer, Department of Management, Siliwangi University, Indonesia.adhityarahmattaufiq@unsil.ac.id 3

Lecturer, Department of Management, Siliwangi University, Indonesia.andinaekamandasari@unsil.ac.id

ARTICLE DETAILS ABSTRACT

History

Revised format: May 2018 Available Online: June 2018

Purpose: The purpose of this study is to determine what factors are most contributing greatly to the change of college organizations that originally private university into the public university, the latent variable used is organizational change.

Methodology: The survey was conducted to 128 lecturers at several new public universities located on Java island by using questionnaires as the main data collection tool. The statistical tool used is Confirmatory Factor Analysis (CFA) to confirm the constructs of latent variables.

Findings: Structure, culture, and resources owned by an organization will be an important factor in shaping institutional change of higher education institution when transformed from private to public. The resource becomes one of the constructs that have the greatest role in the organizational change of higher education institutions.

Research limitations/implications: This study is limited to the proving of organizational change in the higher education institution only. In addition, it should also be investigated the direction of causality relationship by including other variables such as job satisfaction, organizational performance, and others.

Practical implications: In this study, organizational changes reflected by changes in structure, culture, and resources must always be considered by conducting regular evaluations by management to identify which factors have a positive or negative impact of changes that occur either on changes in structure, culture or resources.

Originality/value: This research is testing of constructor model of organizational change variable that uses three main factors namely structure, culture, and resources

© 2018 The authors, under a Creative Commons Attribution-NonCommercial 4.0 Keywords

Organizational Change, New Public Universities

JEL Classification: D23, D29

Corresponding author’s email address: ardiani_tia@yahoo.com

Recommended citation: Ardiani, G.T., Taufiq, A.R., Mandasari, A.E. (2018). Identification of Organizational Change Factors in Higher Education Institution (Cases at New Public Universities in Indonesia). Journal of Business and Social Review in Emerging Economies, 4(1) 53-60

DOI: 10.26710/jbsee.v4i1.363

1. Introduction

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54

capability and form the character and civilization of dignified nation to educate the nation, develop responsive, creative, skilled, competitive and cooperative academic society through the implementation of

Tridharma Perguruan Tinggi and develop science knowledge and technology (Undang-Undang

Pendidikan Tinggi: 2012). Moreover, the strategic thing that became a hot issue in higher education today

is the competition of universities to be World Class University. In the meantime, to achieve this requires a change in fixing the condition of universities, and colleges must be able to act as agents of change which become the link between the source of ideas, knowledge, and technological change in accordance with the targeted community, so it can produce ideas, knowledge, and technology that is always growing and impacting in society. Government efforts in improving the quality of education in Indonesia itself began to be done on a large scale. One of the strategic steps undertaken by the government is to establish a new public university and change the status of several private universities. Currently, there are 35 institutions that are New Public Universities (PTNB). This is done by the government in facing the demands of intense competition in the world of higher education which is expected to provide a more qualified and competent output in the face of global competition.

The change of status from private to public which the government does has had a considerable impact on the newly designated public university management system. Every element of the organization that is in a new public university must always follow the policies that have been governed and controlled by the state both in terms of financial, human resources and maintenance of assets that now fully belong to the state. Especially for the issue of human resource management as the organizational driving force of a new public university today must be committed to dealing with environmental changes to follow the rules of the game that has been issued by the government due to the original employment status of the foundation's employee is now transformed into a Government Employee with Work Agreement (PPPK) which is also included in the State Civil Apparatus (ASN).

With this change is expected to increase the lecturer's satisfaction so as to utilize his professional ability in performing his functional tasks, because the future education demands high-quality educational profession skills. The success of PTNB will depend heavily on the awareness, understanding, readiness, and ability of the lecturers in adapting to change. Changes to PTNB must always take into account and involve all existing components including lecturers. Between organizations and lecturers is a unity that has a relationship that is simultaneous and must be balanced. This means that on the one hand, lecturers should be managed within the framework of the organization's interest flow, on the other side of the organization's activities must be able to pay attention to the interests and needs expected by the lecturer.

New public universities are experiencing turmoil in the transition period of change from private to public. This change includes changes to the internal environment of the organization that requires flexible adjustment for each individual involved. This research is only conducted on lecturers and is not done on the staff of, on the grounds that the lecturer has the main duty namely Tridharma Perguruan Tinggi ie teaching, research and community service where some policies applied after the change of status deemed less accommodate the main task of lecturer, especially to conduct research and community service. Therefore, this research will discuss what factors change when a private university is transformed into public universities that will be based on environmental aspects of the organization at several universities in the island of Java. Therefore it is necessary to conduct research on the identification of organizational change factors in the higher education institution.

Organizational Change of Higher Education Institution

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55 environment has characteristics in which interaction with the organization is directly so that the effect on the steps taken to achieve goals that are immediate. The same is also said by Robbins (2008: 226) that the internal environment is part of the environment that has direct relevance for the organization in achieving its objectives. The internal environment is part of the environment that concerns management, as it consists of critical constituencies that positively or negatively affect the effectiveness of the execution of an organization's tasks. The critical constituencies mentioned above are key factors that on one hand can be a resource for competitive advantage and on the other can be an organizational weakness.

According to Desplaces (2005), the changes that occur in organizations often bring after-effects which are always unprofitable. Organizational change is a process whereby the organization moves from its present state to the desired future to improve its organizational effectiveness. The goal is to find new ways or improve in using resources and capabilities with the aim of improving the ability of the organization in creating value and improve the desired results to stakeholders. Furthermore Wheelen and Hunger (2000: 10) state that the internal environment consists of structure, culture, resources. The internal environment needs to be analyzed to determine the strengths and weaknesses of the organization. The structure is how organizations are organized in terms of communication, authority, and workflow. Structures are often also called chains of command and graphically depicted using an organization chart. Culture is a pattern of beliefs, expectations, and values shared by members of the organization. Organizational norms typically come up with and define the acceptable behavior of members from top management to operative employees. Resources are assets that are the basic material for the production of goods and services of the organization. These assets may include a person's expertise, abilities, and managerial talents such as financial assets and factory facilities in functional areas. Thus, the elements of the internal environment have adaptive and communicative relationships in determining the agenda of analyzing actions of any changes as issues emerging within the organization itself.

Based on the above exposure, it can be formulated hypothesis and framework of research model that is as follows:

H1: Structure is a reflection of organizational change. H2: Good culture is a reflection of organizational change. H3: Resource is a reflection of organizational change.

Methodology

The object of research is organizational changes that occur in some institutions that exist on the island of Java. There are four college-shaped universities that undergo a transition status change from private to the public that is Siliwangi University Tasikmalaya, University of Tidar Magelang, UPN Veteran Yogyakarta and UPN Veteran East Java. The method used in this research is to use survey research method.

The population in this research is the lecturers from four universities of the New Public-shaped universities studied as the object of research. While the sampling technique used is purposive sampling where the sampling is based on personal consideration of the researcher (Sugiama, 2008). In this sampling, the researcher tries to find the belief in advance that the individual chosen as the sample is the right individual that is the lecturers who have experienced institutional management when they are still private so that they can feel and identify the changes that occur.

The determination of sample size in this study is based on the opinion of Hair (1995: 444) that is the survey, the minimum sample size is 100 respondents. Therefore, to improve the accuracy of research results, the sample size is taken between 100 to 200 respondents.

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56

Perubahan Organisasi Structure

Culture

Resource

Chi Square = 700.087 Df = 293 CMIN/Df = 0.087

TLI = 0.937 CFI = 0.943 WRMR = 1.354

and psychometrics and simultaneous equations model developed in econometrics into a comprehensive statistical method (Iman Ghozali, 2013: 4).

Results

Characteristics or identity of the respondent in this research can be grouped into several groups that are based on workplace (work unit), work period, and employment status with the number of respondents used in this research is 128 respondents. The respondent's characteristic of the work unit is dominated by Siliwangi University by 34%, followed by UPN Veteran Yogyakarta that is 24%, Tidar Magelang University is 22% and the last is East Java Veteran UPN which is 20%. The working period is dominated by lecturers who have more than 20 years working period of 54% and 10-20 years working period of 39% and the last is less than 5 years of 7%. Status of employment is the most is the status of PPPK that is equal to 69% and the remaining 31% are lecturers with civil servant status.

Description of research variables conducted to explain the results of the scores on the questionnaire used to assess the significance of research variables seen from the side responses of respondents. The calculation used in obtaining the extent to which the respondents will respond to the research variables is to use the value of interval level (NJI). Variable of organizational change in this research inform by construct variable consisting of the structure, culture, and resources. The value obtained from the analysis of respondents on the structure is 2037, the culture of 2948, and the resource of 2274 which as a whole is in good classification.

To examine the significance of structure, culture, and resources as a variable construct of Organizational Change, the Confirmatory Factor Analysis (CFA) analysis tool is used. The results of full-model data processing on Organizational Change variables through the calculation of M-plus 7.0 program are as follows:

Figure 1. Path Diagram Structural Modeling

The univariate and multivariate normality of the data used in this study was tested using criteria critical ratio or CR of ± 2.58 at the 0.01 (1%) significance level. The results of this study showed that the largest CR value is ± 2.51 with said data used in this study can be said to be normally distributed. The results of the analysis in this study yield the smallest z-score is -2.903 and the largest z-score is equal to 1.985. In other words, the data used in this study is free of univariate outliers. In addition, the greatest distance Mahalanobis is 53.269 which is smaller than (14; 0.001 = 54,051), so there are no symptoms of multivariate outliers.

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57 Overall, the Goodness of Fit is shown in the following table:

Table 1.

Goodness-of-Fit Index

Goodness of Fit Index

Cut-Off Value Results of Analysis

Model Evaluation Χ2

Chi-Square Expected small 700.202

DF 293

CMIN/DF ≤ 2,00 2.389 Marginal

TLI ≥ 0,95 0.937 Marginal

CFI ≥ 0,95 0.943 Marginal

Source: data of questionnaires processed with M-plus 7.0

The table above shows that the criteria used have a value that is marginal or close to fit index, therefore this model is still acceptable. Thus, it can be stated that the suitability of the model and the data in this study result confirmation in a marginal or near-fit of factor dimensions and causality relationships between factors.

With the error rate of 5% (0.05) and Cut-off value of 2.58. The following table presents the values of regression coefficients and C.R (Critical Ratio) as the basis of acceptance of the research hypothesis. The results of the analysis can be seen in the following table:

Tabel 2.

Standardized Regression Weight for Hypothesis Testing

Variables CR p-value Conclusion ( )

Organizational Change by Structure 41.679 0,000 Signifikan

Organizational Change by Culture 38.612 0,000 Signifikan

Organizational Change by Resource 60.259 0,000 Signifikan

Source: data of questionnaires processed with M-plus 7.0

Hypothesis 1. which states that the structure is a reflection of organizational change received. This is indicated by the value of p = 0.000 or at a significant level of 0.05 and gives an estimated value of 0.877. Thus, the structure variable can be the constructor of the organizational change variable.

Hypothesis 2. which states that culture is a reflection of organizational change received. This is indicated by the value of p = 0.000 or at a significant level of 0.05 and yields an estimated value of 0.813. Thus the culture variable can be the constructor of organizational change variable.

Hypothesis 3. which states that the resource is a reflection of organizational change received. This is indicated by the value of p = 0.000 or at a significant level of 0.05 and gives an estimated value of 0.937. Thus the resource variable can be the constructor of organizational change variable.

Conclusions and Implications

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This research can provide some inputs for organizers of higher education institutions that have changed the status of the private sector into the public. In this study, organizational changes reflected by changes in structure, culture, and resources must always be considered by conducting regular evaluations by management to identify which factors have a positive or negative impact of changes that occur either on changes in structure, culture or resources. This research can also provide input for academics who will conduct research on organizational change. This study is limited to the proving of organizational change in the higher education institution only, the direction for further research is to test the model of this research on other organizations. In addition, it should also be investigated the direction of causality relationship by including other variables such as job satisfaction, organizational performance, and others.

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Figure

Figure 1. Path Diagram Structural Modeling
Tabel 2.  Standardized Regression Weight for Hypothesis Testing

References

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